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Premier stresses cross-cycle regulation for economic health

Updated: Jul 14,2021 08:39 PM    english.www.gov.cn

Premier Li Keqiang required on July 12 efforts to exert cross-cycle economic regulation against potential cyclical risks, advance reform and opening-up, safeguard and improve people's well-being through development, and maintain the steady and good momentum of the economy.

The moves will help attain main targets and tasks for the whole year and put the economy on a stable trajectory over the long term, Premier Li said at a symposium on the economic situation with experts and entrepreneurs.

Experts, including Ma Guangyuan and Ma Jun — both economists — as well as persons in charge from Wuhan I'd Group, a garment company, 91Tech Group, a company offering tech services driven by big data and cloud computing, and cross-border e-commerce infrastructure service provider Zongteng Group, spoke at the meeting.

Key economic indicators are good and newly-registered market entities are increasing rapidly, demonstrating economic vitality and business confidence, those at the meeting said.

They also offered suggestions on improving the business environment, supporting financing and innovation of enterprises, and developing cross-border e-commerce.

Although many of the opinions and suggestions were put forward from a micro perspective, they in fact concern macro problems, Premier Li said, stressing related departments should take them seriously and adopt them in future work as much as possible.

Conduct cross-cycle regulation against possible cyclical risks

The economy has strengthened while performing steadily this year, and it meets expectations, the Premier said.

One highlight is China's surveyed urban unemployment rate, which fell in June to a pre-pandemic level of 5 percent. The promising job situation will add greater impetus to the economy, Premier Li said.

"But attention must also be paid to new things and problems occurring in cross-cycle regulation." The Premier stressed.

Uncertainties and instabilities exist as the circumstances at home and abroad remain complicated, he said, adding that bulk commodity price surges have significantly pushed up business costs, bringing great difficulties to micro, small and medium-sized enterprises.

"With firm confidence in China's economic development, we should face up to the difficulties." Premier Li said, urging efforts to pursue economic and social advances with pandemic prevention and control measures in place and vice versa, and guard against potential cyclical risks through cross-cycle regulation, to keep the economy running steadily and healthily.

Sound employment stabilizes economic fundamentals, facilitates people's increase in income

Employment should be prioritized in efforts to keep China's economic operation within a reasonable range, and range-based regulation should be adhered to while cross-cyclical adjustment is in effect, the Premier stressed.

Development remains the key to all issues in China, the Premier said, adding with high pressure on urban employment and rising expectations on income increases, a stable and healthy economic operation is a must.

The Premier also called for overall planning on economic operation for the second half of the year and the next year, continuous and steady macro-economic policies and deterrence from massive and indiscriminate economic stimulus.

Proactive fiscal policies and prudent monetary policies should continue to support the real economy and promote employment, and the recent reduction in the reserve requirement ratio (RRR) should focus more on micro, small and medium-sized enterprises and labor-intensive industries, to help ease financing, the Premier said.

Funds, including local government special bonds, should be utilized, with major projects and projects securing people's basic livelihoods pushed forward. Comprehensive measures should be taken to ease the price hike of bulk commodities. And related departments should continue to give full play to the role of micro, small and medium-sized enterprises, and individual businesses as a major force in promoting social employment, offer more job opportunities to graduates and migrant workers, and develop flexible employment.

Labor is the biggest resource in China. With a labor force of nearly 900 million, highlighting over 200 million highly-educated talents and nearly 300 million migrant workers, labor resources serve as China's strongest competitiveness, Premier Li said. Only a relatively full employment can bring China's labor resource into full play, he added.

Robust reform, opening-up measures to better energize market entities

China will deepen reform, and step up cultivation of market entities, Premier Li said.

At present, China has more than 140 million market entities, showing huge employment capacity and an important support for the nation's development, the Premier added.

Reform, such as streamlining administration and delegating powers and improving services, should be deepened to optimize the business environment. Mass entrepreneurship and innovation should be continuously encouraged. With professionalism carried forward, micro, small and medium-sized enterprises should be encouraged to embark on a specialized and innovative path.

Impartial supervision should be cemented, with monopolies and unfair competition opposed, for the growth of micro, small and medium-sized enterprises.

More measures for reform and opening-up should be taken to better energize market entities, and people's wisdom should be pooled to create more wealth.

Premier Li urged higher-level opening-up, better utilizing international and domestic markets and resources, and developing new types of businesses, such as cross-border e-commerce and overseas warehouses, for a steady increase in foreign trade and investment, to keep China a hotspot for foreign investment.

"China should obtain better development while expanding high-level opening-up and integrating itself with the global economy," the Premier said.

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